MENU		FIRST TIME HOME OWNERSHIP		GLOSSARY
FIRST-TIME HOME BUYERS SEMINAR If you are thinking about buying your first home, you will want to read my FREE First-Time Home Buyers Online Seminar. Get all the information you need to make you a knowledgeable buyer from the comfort of your own home. Maximum Mortgage Calculator Calculate the maximum mortgage amount you qualify for based on your income. Rent vs. Buy Calculator Determine which is more economical, renting or buying, based on your payments and accommodation information.		Both the government of Canada and the Ontario government have established programs to assist first time home buyers. The two best known programs are the RRSP Home Buyer's Plan  and the Land Transfer Tax rebate. In addition to information about the programs to assist first time home buyers, we have also added a paragraph with tips. If you are buying a home, your real estate sales representative can help you find the right type of home at the right price, prepare your offer to purchase, and present your offer to the seller. In most cases, there is no direct cost to you for these services.		If you have never purchased a home before, you may be confused about the real estate terminology used. In the GLOSSARY section you will find an explanation for most real estate and mortgage expressions. You can access the glossary from each page by clicking the button in the menu at the left. To open a new window that you can minimize while surfing this website, click the button below.
		RRSP HOME BUYER'S PLAN		MUNICIPAL LAND TRANSFER TAX REFUND
		The RRSP Home Buyer's Plan (HBP) was introduced by the federal government, and allows first time home buyers to withdraw up to $20,000 from their RRSPs tax free to use towards the purchase of a home. To qualify as a first time home buyer, purchaser must not have lived in a home owned by himself or his spouse in the last five years. If both you and your spouse qualify under the Plan, you can each withdraw up to $20,000 from your RRSPs for a total of $40,000. Before you are entitled to withdraw the money from your RRSP, you must have entered into a written agreement to purchase or build a home that you intend to occupy as your principal residence. The purchase of a cottage, for example, would not qualify for this program because it is not a principal residence. Money can be withdrawn from your RRSP provided it has been in your RRSP for at least 90 days. If you have signed an Agreement of Purchase and Sale and you have at least 90 days until your closing, you can open an RRSP and make a contribution, receive the tax deferred benefit and then withdraw the same money and put it towards the purchase of your home. Money withdrawn under this federal program must be paid back to your RRSP within 15 years. People generally deposit one fifteenth of the amount withdrawn back to the RRSP over each of the following 15 years. If you do not pay the full amount back to your RRSP within 15 years, the amount outstanding will be subject to tax when you file your income tax return in the following year. What if you don't have any money in your RRSP? Do not worry, you can still take advantage of the Home Buyers Plan (HBP). If you are earning income, or have earned income in the past few years, you are entitled to contribute to an RRSP. What is not very well known about the HBP is that you can contribute to an RRSP retroactive. Therefore, check to see what your RRSP contribution limit is. It is shown on your previous years Notice of Assessment, or call Revenue Canada. If you need help raising a downpayment, the HBP may be of some use to you. If there are significant unused contributions from previous years, take out a short-term RRSP loan to cover them. After 90 days, you repay your loan by cashing in your RRSP and you use your tax refund for the downpayment on your new home. A tax refund is an acceptable downpayment if it is in hand at the time of closing. For general information about Registered Retirement Savings Plans (RRSP), visit the website of Canada Customs and Revenue Agency.		As a taxation measure granted under the City of Toronto Act,2006, Toronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to purchases on all properties in the city of Toronto in addition to the Province's Land Transfer Tax. You may be eligible for a rebate of the MLTT if you are a first-time purchaser of a newly constructed or re-sale residential property with two or less single-family residences. The rebate for first-time purchasers is up to a maximum of $3,725.00. For information about the refund, visit the website of the City of Toronto.
				PROVINCIAL LAND TRANSFER TAX REFUND
				In the 2007 Ontario Economic Outlook and Fiscal Review, the government proposed to expand the Land Transfer Tax Refund Program to include first-time homebuyers of resale homes for agreements of purchase and sale entered into after December 13, 2007. This measure was included in Bill 44, Budget Measures and Interim Appropriation Act, 2008, and, having received Royal Assent on May 14, 2008, is now law. As a result of this change, first-time homebuyers of resale homes may now be able to receive a refund from the provincial government of up to $2,000 of the land transfer tax paid. To qualify for a refund: you must be at least 18 years old; you cannot have previously owned a home, or an interest in a home anywhere in the world; your spouse cannot have owned a home, or an interest in a home anywhere while he/she was your spouse. The maximum refund is $2,000 and qualifying purchasers must apply for the refund no later than 18 months after registration of the home if they do not receive the refund at the time of registration. For information about the refund, visit the website of the Ontario Ministry of Finance.
		MORTGAGE BROKER
		For your convenience the House Hunting In Toronto website has selected Preferred Partners for several real estate related services. Our Preferred Mortgage Partner is Michael Pezzack, mortgage consultant for Buyingblock. His job is to help you decide on the best mortgage package then find you the lowest rate - his service is free. To contact Michael, give him a call at 416-850-2642.
		TIPS FOR FIRST-TIME HOME BUYERS
		From the moment you think about buying a home, start planning. One of the first steps on the road to purchasing a home is to save money for the down payment. Most people finance the purchase of their homes with a mortgage loan. Traditionally, financial institutions would only give mortgage loans for up to 75% of the value of the home, and therefore required a 25% down payment on the purchase of a home. However, with mortgage insurance, you can now obtain a mortgage loan for up to 95% of the value of the home with as little as a 5% down payment, for a home worth up to $300,000. To qualify for a mortgage loan, you will be subject to a credit check. Request a copy of your credit report. Carefully examine it for errors, and clean it up before you talk to a lender. For at least one year prior to purchasing a home, you should ensure that every credit card invoice, rent cheque, car payment and other debt is paid in full and on time. If you are you currently renting, check your lease for an early termination clause. If you'll be subject to penalties, try to time your closing with the expiration of the lease. It's smart to ask your lender to pre-approve, rather than pre-qualify you for a mortgage. Pre-qualification only tells how much you can afford. Pre-approval goes a step further. Although not a final loan commitment, the pre-approval letter can be shown when bidding on a home. This information is important to the sellers since they do not want to accept an offer that is likely to fail because financing cannot be obtained. Once you determine how much you can afford to pay for a home, try to stay within your budget. Look at many homes, including an assortment of types of homes. When you view a property, list the positives and the negatives. Don't stop your inspection at the property line. Examine the surrounding area. Is it safe, well maintained and moderately quiet? Is it convenient to work, schools and shops? Ask about zoning and that vacant lot across the street. When you decide on a lender (a bank, your credit union, or a mortgage lender) and a mortgage, get every detail in writing, in particular, the lock-in rate, privileges and fees. Read all the documents related to the purchase of the property, and have a professional review them. You're signing a binding, legal document. Ready to go house hunting? I will gladly explain the options, and provide you with information detailing current market conditions, financing options and listings of available homes for sale. You can call me at 416-498-1710 or at my HomeLife/Bayview office, 416-324-2822 or send me an e-mail at .
		REAL ESTATE LINGO, ABBREVIATIONS & ACRONYMS
		Reading a real estate classified is sometimes comparable to deciphering an ancient alphabet. What do they mean with all those abbreviations and acronyms? Here are some examples with explanations to help you out. 4B/2B - Four bedrooms and two bathrooms a/c - air conditioning apt - apartment appls - appliances assum. fin - assumable financing balc - balcony bsmt - basement ba, bth, bthrm - bathroom br, bdrm - bedroom bldg - building bung - bungalow cac - central air conditioning contingency - a provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met cvac, c/vac - central vacuum CMA - Comparative Market Analysis or Competitive Market Analysis. A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market, but not sold within the listing period condo - condominium dbl - double det - detached dk - deck elf - existing light fixtures exp - exposure expansion pot'l - expansion potential mean that there is extra space on the lot or the possibility of adding a room or even an upper level, subject to local zoning restrictions ext - exterior fab pentrm - fabulous pentroom, a room on top (but under the roof) that has great views. fdr - formal dining room fin. bsmt - finished basement fixture - anything of value that is permanently attached to or part of real property fncd - fenced frplc, fpl, fplc, fp - fireplace fsbo - for sale by owner full bathroom - room with a toilet, a sink and a bathtub gar - garage (www.househuntingintoronto.com) gard, gdn - garden grmet kit - gourmet kitchen half bathroom - also known as "powder room"; has only a toilet and a sink hdw, hwf, hdwd - hardwood floors hi ceils - high ceilings in-law potential - potential for a separate apartment, subject to local zoning restrictions listing - an agreement between a real estate broker and a home owner that allows the broker to market and arrange for the sale of the owner's home. The word "listing" is also used to refer to the for-sale home itself. A home being sold by the owner without a real estate agent is not a "listing" lock box - locked key-holding device affixed to a for-sale home so that real estate professionals can gain entry into the home after obtaining permission from the listing agent lo dues - low home owner's association dues. lsd pkg - leased parking area MLS - Multiple Listing Service. An MLS is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate brokers nr bst schls - near the best schools ph - penthouse pot'l - potential prkg - parking pvt, priv - private pwdr rm - half bathroom or powder room real property - real estate is legally called "real property", while movables are called "personal property" reno - renovated rm - room sep entr - separate entrance sol - solarium three-quarter bathroom - has a toilet, a sink and a shower twnhse - townhouse upr - upper floor vw, vu, vws, vus - view(s) w/w - wall to wall w/d - washer / dryer yd, yrd - yard FIND YOUR NEW HOME WITH

CONTACT INFORMATION
		Rick McGuigan Toronto real estate sales representative Coldwell Banker Case Realty Phone: 416-696-5100 Pager: 416-461-0925
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